| for the year ended December 31, 2004 | |||
| Notes | 2004 £m |
2003 £m |
|
|---|---|---|---|
| Turnover: Group and share of joint ventures | 6,229 | 6,038 | |
| Sales to joint ventures | 965 | 936 | |
| Less share of joint ventures’ turnover | (1,255) | (1,329) | |
| Group turnover | 2 | 5,939 | 5,645 |
| Cost of sales | (4,812) | (4,714) | |
| Gross profit | 1,127 | 931 | |
| Other operating income | 3 | 73 | 153 |
| Commercial, marketing and product support costs | (302) | (292) | |
| General and administrative costs | (296) | (288) | |
| Research and development (net)* | (282) | (281) | |
| Group operating profit | 320 | 223 | |
| Share of operating profit of joint ventures | 49 | 52 | |
| Profit on sale or termination of businesses | 31 | 9 | 6 |
| Loss on sale of fixed assets | (2) | (11) | |
| Profit on ordinary activities before interest | 2 | 376 | 270 |
| Net interest payable – Group | 4 | (48) | (66) |
| – joint ventures | (22) | (24) | |
| Profit on ordinary activities before taxation | 3 | 306 | 180 |
| Taxation | 5 | (101) | (64) |
| Profit on ordinary activities after taxation | 205 | 116 | |
| Equity minority interests in subsidiary undertakings | (1) | — | |
| Profit attributable to ordinary shareholders | 204 | 116 | |
| Dividends** | 6 | — | (53) |
| Transferred to reserves | 26 | 204 | 63 |
| * Research and development (gross) | (601) | (619) | |
| ** Payments to shareholders (see Accounting policies – B Shares) | (140) | (137) | |
| Earnings per ordinary share: | 7 | ||
| Underlying | 14.50p | 12.20p | |
| Basic | 12.07p | 7.04p | |
| Diluted | 11.64p | 6.94p | |
| As permitted by the Companies Act 1985, a separate profit and loss account for the Company has not been included in these financial statements. | |||
| Balance sheet and Cash flow 2003 comparatives have been restated to reflect UITF 38 ‘Accounting for ESOP Trusts’ (see note 1 ). | |||
| There have been no material acquisitions or material discontinued operations in 2004 or 2003. | |||